Hengfeng Bank Finishes USD14.5 Billion Restructuring to Fight Off Controversy
Liao Shumin
/SOURCE : yicai
Hengfeng Bank Finishes USD14.5 Billion Restructuring to Fight Off Controversy

(Yicai Global) Jan. 13 -- Hengfeng Bank has completed its CNY100 billion (USD14.5 billion) fundraising round and found a new controlling shareholder as it looks to bounce back from a period of public controversy, Xinhua News Agency reported yesterday.

The state-owned joint-stock bank got approval from the China Banking and Insurance Regulatory Commission on Jan. 3 to privately issue 60 billion shares to Central Huijin Investment, 36 billion to Shandong Financial Asset Management, and 1.86 billion to Singapore's United Overseas Bank at CNY1 (15 US cents) apiece. Other backers made up the remainder.

The move made the investors the top three shareholders with 53.4 percent, 32.4 percent and 3 percent of equity in Hengfeng Bank, displacing Yantai Blue Sky Investment Holdings and Shanghai Lurun Asset Management. Singapore UOB was previously the firm's second-largest shareholder.

One of China's 12 national joint-stock banks, Hengfeng has been fighting an uphill battle in recent years, after two consecutive chairman were investigated for crimes including corruption and bribery, failure to release annual reports, and selling risky products.

Editor: James Boynton

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Keywords: Hengfeng Bank